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Hotel Cortez is an all-equity firm that has 11,500 shares of stock outstanding at a market price of $39 per share. The firms

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Answer #1

Number of shares after repurchase 9,705 =11500-70000/39 Breakeven EBIT: EBIT:11,500 = (EBIT-$4,200):9,705 EBITX9,705 = 11,500

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